The growing demand for healthcare services amid the COVID-19 pandemic has led to substantial capital inflows to the industry. Moreover, disruptive progress in genomics and smart healthcare is expected to be the next big thing. Given the industry’s solid growth prospects, we think fundamentally sound healthcare stocks Global Cord (CO) and IRIDEX (IRIX), which are currently trading at more than 25% below their 52-week price highs, could deliver significant returns. Let’s take a closer look at these names.Healthcare spending has increased significantly in recent years, and currently accounts for more than 17% of U.S. GDP. The United States spends almost twice as much on healthcare as other nations. Healthcare companies’ crucial role in helping the world fight against coronavirus has led to significant capital inflows in the industry from governments and private organizations worldwide.
The industry’s revenue increased 26.9% year-over-year and 6.7% sequentially in the second quarter of 2021. Moreover, the burgeoning genomics and healthcare technology segments are expected to revolutionize the industry in the near term.
So far, the industry has demonstrated immense growth potential, with significant progress in smart healthcare and innovative breakthroughs. Given the industry’s vitality and its growth prospects, we think that fundamentally sound healthcare stocks Global Cord Blood Corporation (CO) and IRIDEX Corporation (IRIX), which are currently trading more than 25% below their 52-week price highs, could be good bets now. These stocks are rated ‘Strong Buy’ in our proprietary POWR Ratings system.